Bloomberg analyst warns U.S. 10-year yield near 5% limits gold, Bitcoin upside

Bloomberg senior analyst Mike McGlone stated that gold and Bitcoin are facing significant resistance as the U.S. 10-year Treasury yield approaches 5%. The report noted that gold and Bitcoin rebounded from support levels of 4000 and 60000, respectively, but are unlikely to surpass their previous record highs of 5000 and 100000. The attractiveness of high-yield bonds with returns near 5% is restricting capital flows into these risk assets, given their speculative nature and lack of interest income. McGlone cautioned that the current environment, with the 10-year yield rising tenfold from its previous low, may indicate strong selling pressure for alternative assets, contrasting with the buying opportunities created by the zero-rate environment and extreme liquidity of 2020.

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